One of the most challenging decisions before venturing into a Master’s programme is – when to start. Most of us are so engrossed in our daily lives, trying to make a living, juggling family and work that the thought of starting a Master’s is often put on a back burner.
However, I feel when you fear the unknown, start small and take baby steps before taking the plunge.
This is precisely what York St John University is offering now in partnership with Robert Kennedy College.
Dr. iur. David Costa, Dean of Robert Kennedy College, explains the Online MBA Entry Module.
All you need to know about the Online MBA Entry Module
Why enrol in the entry module?
The online open access entry module is easy to get started with. It is a gateway to enrol for York St John University online MBA.
What is the duration of open access module?
You can complete the access module in as little as 3 months. The full MBA can be completed in 12 months.
What do you receive at end of the programme?
At the end of the programme, you will receive the University transcript from York St John University. You also will have the opportunity to continue to pursue Full Online MBA.
What is the fees for the programme?
1000 Swiss Francs (approx. US$ 1079) payable in 3 monthly installments of 333 CHF. You can register and start with just 333 Swiss Francs. If you decide to progress with the full York MBA the 1000 Swiss Francs Entry Module fee will be deducted from the full MBA fee.
What are the steps to enrol and study the open access module?
Here are few simple steps to get enrolled and started:
Register for Entry Module: Just one click and you can get started. Start your MBA with just 333 Swiss Francs
Access to Online Campus: Once you pay the registration fee, you will receive access to OnlineCampus and University Library
Study 100% online: The programme offers flexibility to view the recorded lectures anytime, anywhere.
Submit assessments: Prepare for the assessments. Our Professors will assist you in preparing for your final assessment.
And Finally… Start your MBA: After successful completion of the entry module, you can choose to continue with the MBA programme.
Still have more questions? Talk to one of our advisors live on WhatsApp to know more.
The vast majority (if not all) of our students are working and leading remarkably busy professional lives. Some are motivated and have already decided to undertake a master’s, while others contemplate the unknowns of an online programme. In my experience, two things affect their decision the most.
First – finances, and second, being able to strike the perfect work, study, and life balance. While I cannot completely help you with the finances (partially yes – check out the discount offers currently being offered on our online MBA, MSc, and LL.M programmes), I thought what I could do to help was to bring some facts to light about the other unknowns – what does a typical day in the life of an online master’s student look like?
I asked a few of our students from different walks of life, occupations, and personal situations to answer a few questions on their study tactics and strategies, plans and reality, and so on. I thank each one of the respondents for taking the time to share their experiences and give valuable advice to you – possibly future students. In our ‘a typical day in the life of a master’s student’ blog series, we bring to you one of our real students or alumni sharing the insights.
Today, we’re looking at one of our students journey, a busy professional being a CEO of an International NGO, who got only busier during and after Covid.
An Introduction
Which programme did you choose and why?
MBA Leading Innovation and Change, because the “Aid industry” needs to innovate and change and I needed to learn so I could play a small part in that.
The Study Plan
How did you plan to study each module, and what was the reality? How many hours did/do you have to put in each day/or in a week?
Given my intense work schedule I chose to do the program over two years committing to 25 hours per week of study during the time actively enrolled in a module plus pre-reading between modules. It all went well for the first module and then I had to take a few years off due to a serious medical situation.
Since restarting It will took me two years to complete the remaining 3 modules and the dissertation. Time commitment on modules 25 hours per week average was close, albeit closer to 40 hours a week closer to deadlines.
What part of the day did/do you find most suitable to study? (e.g. early mornings, lunch break, evenings, weekends?)
Well, for me it was evenings and weekend, sometimes late evenings as late as 3am. I eventually understood that the studies cannot be done effectively in an hour or two at a time. It definitely needed longer periods of intense study.
How much time did you devote for each assignment?
I took the 300 hours recommended very seriously in my planning (25 jours per week per module) In the end, I probably averaged 350-400 per module. There is so much reading to do and lots of great rabbit holes 🙂
Immensely! My job involves me being all over the world 6 months out of 12 and this heavily impacted one module. I planned the best I could, but it was a huge challenge and in the end I had to get board permission to back off on some work commitments to ensure I succeed in my studies. Fortunately, my board is very understanding, I don’t think everyone would have that privilege. In the end, Covid slowed travel, but at the same time increased my workload very heavily.
How were you able to interact with peers and/or professors given the time differences?
I was so disappointed with the switch to an on-line residency because of Covid. Other than that, online interaction was fine and time differences were not a major issue for me.
A typical day as a master’s student
What does a typical day as an Online Masters’ student look like for you?
There was no typical day for me, intense travel schedules and work responsibilities made that extremely difficult. Some weeks I could not get more than a few hours and in other weeks I studied 60 to 70 hours.
Any advice?
Any advice you have for students to better plan their studies.
Do not undertake this lightly. Be realistic in your planning, consider your work loads and travel schedules and make sure you build a realistic study plan around them. It takes huge discipline, you have to make it a priority and in doing so consider your family situation too. I am thankful that my wife understands how important this is to me and continues to support me throughout.
All right folks, this was a sneak peek of a typical day as a master’s student. I hope you find it insightful and informative and that it gives you an idea of what to expect when you enrol for our master’s programmes. Watch this space as we have many more interesting insights coming up!
Welcome back readers. Continuing about the economic predictions for 2023, let’s understand what recession is, its cause and effects on global economy.
What is a Recession and How Does It Affect the Economy?
A recession is a period of economic decline characterized by a contraction in economic activity. It is typically measured by a decline in Gross Domestic Product (GDP) over two consecutive quarters. Recessions can have significant and far-reaching effects on the economy and can lead to high levels of unemployment, reduced consumer spending, and a decrease in business profits.
The COVID-19 pandemic led to a global economic recession in 2020, with the International Monetary Fund (IMF) estimating that the world economy contracted by 3.5% that year. The pandemic also led to widespread job losses and business closures, with many countries implementing lockdowns and social distancing measures to slow the spread of the virus.
What causes a recession?
Recessions are often caused by a variety of factors such as a decline in consumer confidence, a decrease in business investment, or a financial crisis. During a recession, businesses tend to cut back on spending, which can lead to job losses, reduced salaries, and a decrease in overall economic activity.
Fiscal and Monetary Policy Measures: Since last year, Banks have aggressively raised interest rates to bring inflation under control. This would cool the consumer demand as borrowing becomes expensive, resulting in less spending and slower price growth.
The global economy is projected to grow by 4% in 2021, following a contraction of 4.3% in 2020. Photo credit: Canva.com
Global GDP Growth: According to the World Bank, the global economy is projected to grow by 4% in 2021, following a contraction of 4.3% in 2020. However, the recovery is expected to be uneven across countries and sectors, with some countries and industries experiencing a slower recovery than others.
Unemployment Rates: Unemployment rates have increased in many countries as a result of the pandemic and recession. In the United States, for example, the unemployment rate rose from 3.5% in February 2020 to 14.8% in April 2020 before declining to 6.7% in December 2020. As of January 2022, the U.S. unemployment rate was 4.2%.
Inflation: Inflation has been a concern for many countries as the global economy recovers from the pandemic. In the United States, inflation has risen to its highest level in over 30 years, with the consumer price index (CPI) rising by 7% in December 2021 compared to the previous year. The Federal Reserve has responded by raising interest rates and tightening monetary policy.
How Can We Prepare for a Recession?
While it is difficult to predict when a recession will occur, there are steps that individuals and businesses can take to prepare for an economic downturn. Here are some strategies to consider:
Build up savings: Having a cushion of savings can help individuals and businesses weather a recession. Aim to save at least 3-6 months’ worth of expenses or revenue.
Reduce debt: Reducing debt can help individuals and businesses manage their finances during a recession. Consider paying off high-interest debt and reducing expenses.
Diversify investments: Diversifying investments can help minimize the impact of a recession on your portfolio. Consider investing in a mix of stocks, bonds, and other asset classes.
Focus on cash flow: During a recession, cash flow is key. For businesses, focus on improving collections and managing inventory. For individuals, consider taking on extra work or selling unused assets to generate extra income.
Stay informed: Stay up to date on the latest economic news and trends. This can help you make informed decisions about your finances and investments.
In conclusion, recessions can be challenging and have far-reaching effects on the economy. However, with careful planning and preparation, individuals and businesses can minimize the impact of a recession on their finances and even use it as an opportunity for growth and innovation.
Effect of recession
The effects of a recession can be particularly severe for certain groups of people, such as those in lower-income brackets, as they may be more vulnerable to job loss and reduced access to credit. Recessions can also lead to a decrease in public services, as governments may need to cut back on spending to manage their budgets.
Global economic activities are affected heavily by geopolitical trends. The world economic forum suggests that amongst major factors resulting in slow down of business activity in 2023 are weak consumer demand and high cost of borrowing. This downturn would result in cutting business operational expenses and optimizing supply chains.
Photo credit: World Economic Forum
Correlation of Recession to Inflation:
The relationship between recession and inflation is complex and can vary depending on the specific economic conditions at play. In general, however, recessions and inflation are often seen as opposite sides of the same coin, with recessions tending to put downward pressure on inflation and expansions tending to put upward pressure on inflation.
During a recession, economic activity slows down, which can lead to lower demand for goods and services. As a result, businesses may lower their prices to stimulate demand and stay competitive, leading to lower inflation or even deflation. In addition, high levels of unemployment during a recession can reduce workers’ bargaining power, leading to lower wages and less pressure on employers to increase prices.
On the other hand, during an economic expansion, increased demand for goods and services can lead to higher prices and inflation. This can be exacerbated if there are supply constraints, such as a shortage of workers or raw materials, which can drive up prices further.
During an economic expansion, increased demand for goods and services can lead to higher prices and inflation. Photo credit: Canva.com
It’s important to note that the relationship between recession and inflation can be influenced by a range of factors, including government policies, international trade, and changes in commodity prices. In addition, there can be lags between changes in economic activity and changes in inflation, as businesses may take time to adjust their prices and workers may negotiate wage increases on an annual basis.
Overall, while there is no direct causal relationship between recession and inflation, the two are often intertwined in complex ways, and policymakers must consider both factors when making decisions about monetary and fiscal policy.
Can recession be avoided?
Recessions are a natural part of the economic cycle, and it is difficult to completely avoid them. However, there are some steps that can be taken to reduce the likelihood and severity of recessions:
Fiscal Policy: Governments can use fiscal policy to stabilize the economy. During times of economic growth, governments can save money, pay down debt, and build up reserves, so they have more resources to use during a recession. During a recession, governments can use fiscal stimulus measures such as tax cuts, infrastructure spending, and transfer payments to help boost demand and support the economy.
Monetary Policy: Central banks can use monetary policy to stabilize the economy. During a recession, central banks can lower interest rates and increase the money supply to encourage spending and investment. During periods of high inflation, central banks can raise interest rates and tighten monetary policy to cool down the economy and reduce inflationary pressures.
Structural Reforms: Governments can implement structural reforms that make the economy more efficient and more resistant to shocks. For example, reforms that increase competition, reduce regulation, and promote innovation can help the economy adapt to changes in the global marketplace.
International Cooperation: International cooperation can help reduce the likelihood and severity of recessions. For example, countries can work together to reduce trade barriers, coordinate their fiscal and monetary policies, and share best practices for economic management.
It is important to note that while these steps can help reduce the likelihood and severity of recessions, they cannot eliminate them. Recessions are a natural part of the economic cycle, and they can be caused by a variety of factors, including natural disasters, geopolitical events, and changes in consumer behavior. However, by implementing sound economic policies and promoting international cooperation, governments and central banks can help create a more stable and resilient global economy.
On a brighter note, recessions can also lead to opportunities for economic growth and innovation. For example, during the Great Recession of 2008, the rise of new technologies and increased competition led to the growth of the gig economy and other forms of flexible work. Similarly, many businesses have used recessions as an opportunity to restructure and streamline their operations, leading to increased efficiency and profitability.
Share your thoughts about recession in comments below.
As a former Education advisor, if I had to pick one of the most frequently asked questions by prospective students, it would be “How many hours do I need to study?”
The vast majority (if not all) of our students are working and leading hectic professional lives. Some are motivated and have already decided to undertake a master’s, while others contemplate the unknowns of an online programme. In my experience, two things affect their decision the most.
First – finances, and second, being able to strike the perfect work, study, and life balance. While I cannot completely help you with the finances (partially yes – check out the discount offers currently being offered on our online MBA, MSc, and LL.M programmes), I thought what I could do to help was to bring some facts to light about the other unknowns – what does a typical day in the life of an online master’s student look like?
Today, we’re looking at overview of one of RKC’s student typical day who is taking MBA Learsership and Management, offered in exclusive partnership with York St. John University.
An Introduction
Which programme did you choose and why?
I am studying MBA Leadership and Management. I chose it because I am a finance professional but work with the Operations unit which oversees the running of the office. And leadership and Management skills are required be able to manage people.
The Study Plan
How did you plan to study each module, and what was the reality? How many hours did/do you have to put in each day/or in a week?
The course is conducted online. I mostly study on weekends and sometimes week days in the office when everyone has left. I usually listen to lectures and make my own notes from them. In total, I put in more than 10 hours a week, as I also have to do research and listen to the videos over and over, alongwith reading relevant text books.
What part of the day did/do you find most suitable to study? (e.g. early mornings, lunch break, evenings, weekends?)
On weekends I would study early mornings and also late evenings. On weekdays, I preferred studying late evenings after work in the office when everyone would leave. I usually stay back for at least 2 hours.
In total, I put in more than 10 hours a week
How much time did you devote for each assignment?
Quite some time you need to do proper research and also understand your subject matter for you to be able to get a pass mark. So I had to drop out some social commitments and devote more time to my studies.
Travelling and Communication
Did you travel for work? How did travelling impact your ability to study?
I am studying online so travelling did not impact me.
How were you able to interact with peers and/or professors given the time differences?
There was a module that required a group interaction and my fellow students lived in two different time zones. But we were able to agree on a time that we could meet. Time differences did not affect my interaction with my professors as they always responded to me in time and they could be reached whenever need be.
A typical day as a master’s student
What does a typical day as an Online Masters’ student look like for you?
A typical day for me starts early at about 5:30am on weekends with me going to our OnlineCampus listening to videos and reading the online materials. On week days it also starts at 5:30am and getting ready for work. I usually work till 6:00pm and after I finish, would study for 2 hours, sometimes more in the office.
Any advice?
Any advice you have for students to better plan their studies.
The best advice I can give to students is
1. Find a time in the day for up to 2 hours that you can concentrate on just your studies
2. Reduce social activities especially if you are working and studying at the same time
3. Try to ask a lot of questions to your professor if you don’t understand the instructions given for an assignment. I had to retake a module because I misunderstood the instruction.
4. Find a fellow student within the course you are doing, with who you can discuss few topics for better understanding.
5. Learn to submit assignment 2-3 days before the deadline. You might get unexpected internet challenge uploading your assignment at the last minute and miss the deadline by few minutes which will make you get a capped mark.
Guochang used reading tools, as Acrobat for reading, Zotero for note…
All right, so this was a sneak peek of a typical day in life as a master’s student. I hope you find it insightful and informative and that it gives you an idea of what to expect when you enrol for our master’s programmes. Watch this space as we have many more interesting insights always!
Our students come from different walks of life. Robert Kennedy College (RKC) takes pride in being a truly international college, with over 7000 students from 140 countries.
Our 100% online programmes have been designed for busy managers. Our students and alums work for many international organisations and top companies from all over the world.
Let me introduce one of the RKC’s proud students – Daniel Blackburn. Daniel is the owner and Managing Director of Blackburn Consulting (Pty) Limited, based in Beau Vallon, Mahe, Seychelles, and is an LLM student. Daniel is currently enrolled in the LL.M International Commercial Law programme offered by the University of Salford (UoS). Daniel chose this programme because he wanted to improve his legal knowledge to become a legal consultant and an expert witness.
Apart from balancing his busy study schedule and demanding professional life, Daniel also participated in the African Excellence Award 2022 to showcase the strength and success of his consultancy in their field of business.
And based on various judging criteria of business performance, longevity, sustained business growth and innovation, Daniel’s firm Blackburn Consulting (Pty) Limited won the “Best Project and Contract Management Company Seychelles” award.
Daniel’s firm Blackburn Consulting (Pty) Limited won the “Best Project and Contract Management Company Seychelles” award.
Thrilled with this achievement, Daniel is chuffed about the recognition and brand exposure his firm will achieve, attracting new customers and employees wanting to work with the best in the industry.
As the winner of the “African Excellence Awards 2022”, Daniel was also invited to take part in the “Africa’s Business Heroes’ Competition”.
About his study experience with Robert Kennedy College, we asked Daniel to tell us more about a typical day as an RKC student.
Daniel has so far completed two modules with success. Each module comprised two assignments, a group assignment and an individual assignment. He devoted 15 to 20 hours per week towards his studies; however, more during his preparation for the assignments (approx. 35 hours). Daniel would spend time early in the morning for studies and then again in the evening. Daniel said, “When I wake up every day, the first thing I do is to check my inbox to see if there is any news in connection with my ongoing course, check the tutor’s posts/guidelines and other information such as classmates’ discussions and forums”.
Daniel Blackburn with ABH logo
Regarding online learning, Daniel says RKC has an effective communication platform, allowing students to contact and receive replies from their tutors/student care/ administration. “For example, if I have any questions or clarifications on any subjects, I always contact my professors by ‘direct questions to the tutors’ or email the student care, and I usually receive the reply within 2 to 3 days.”
Further, Daniel shares that the professors/tutors are proactive course leaders and high-calibre persons. They uploaded several video lectures and a list of helpful reading materials from reputable authors to facilitate the students with their studies.
“During the discussions in forums, I was fascinated with very high-ranking classmates.
This kind of interchange with classmates in forums is fruitful and seen as reflection-on-action, that is, being open to new ideas. Through it, for example, my practice is developing and remaining vibrant. Working on a group assignment helped me learn a lot and discover my weaknesses.
Group and individual assignments enhance my legal knowledge to tackle daily problems/situations (i.e. putting what I learned into practice).”
Based on his experience thus far, Daniel advises current and potential RKC students:
“If you really want something, you’ll make time for it. Prioritise your time to meet your goals. Successful students always focus on the tasks at hand. No doubt time management can help students prioritize wisely and set goals correctly and a set time limit to complete all the tasks/activities.”
A truly inspirational and motivating life story of one of our students, driving success in his career. I am sure you feel inspired enough to take that plunge of investing in education, investing in your future, investing in yourself!
Chat LIVE on WhatsApp with one of our Education Advisors for more information on all the programmes we offer and the application process. For information on discounts, we might be offering at this time.
One day I was sulking over the pitiful return I got from my money in a bank’s saving account (The rate of interest offered by my bank is a little shy of 0.01% for a balance over $5000 and 0% on balances less than $5000). My colleague shared a similar disappointing story of seeing his money stay the same over a period, giving no returns. He was a risk-taker and invested in crypto about a decade ago. I stayed put as I knew little about crypto and thought it was all a scam! Fast forward ten years, he now owns a healthy bank balance or, should I say, digital currency balance and a brand new mode of payment!
This trend is here to stay and become a financial revolution in the currency world.
Photo credit: Canva.com
There is an increasing interest in buying and using cryptocurrency, especially among millennials, as this is the future of payments. Consumers don’t want to miss out on this lucrative investment opportunity or miss being part of the futuristic trend of being able to pay with digital currency for retail purchases. The market has a strong interest, and the findings suggest that current owners, former and even non-owners, are eager to own and use cryptocurrencies for making purchases in the future. As per the Cryptocurrency Payments Report May 2021, “12% of consumers (a projected 30 million) currently own one or more cryptocurrencies, 4.5% (11.5 million) have owned them in the past, and 17 million non-owners may acquire cryptocurrency to make purchases in the near future.”
Currently, crypto owners have spent their digital currency on making purchases of jewellery, grocery, online gaming/gambling, food delivery and even real estate. They would like to pay for retail products, travel, financial services, furniture and appliances and streaming services with cryptocurrency.
All they await is more merchants to open doors to cryptocurrency and start accepting the new mode of payment! So, merchants pay attention!
Here are 5 reasons why businesses should join this revolution and should consider accepting cryptocurrency:
1. Opening doors for new customers
Businesses can give their brand an instant facelift by accepting virtual currencies. It provides a cutting-edge image to the company, attracting new customers keen on spending cryptocurrency.
2. Lower fraud risk
Unlike credit cards, cryptocurrency is safe from chargebacks or fraud. The transactions processed with cryptocurrency usually cannot be reversed or cancelled, which means lesser chances of fraud.
3. Lower transaction fee
Businesses can potentially save a lot on the processing fees they usually pay on transactions using the traditional methods. With cryptocurrency, the processing cost will reduce even more if using the same blockchain crypto. Hence, businesses will eventually get a bigger slice of the profits.
4. Lesser trading risk
Cryptocurrencies are meant to pose smaller risks. The market fluctuations do not affect the value of your business when you are dealing in cryptocurrency.
5. Boundaryless payments
In this international market, especially in post-covid conditions, businesses can go global by accepting digital payments from anyone anywhere. Anyone having an internet connection can make a purchase without worrying about the exchange rates for currency conversions.
Cryptocurrencies have been gaining momentum and have caught the eye of one too many. This is one of the ways to stay ahead of the competition by taking on the forward-thinking opportunity.
Robert Kennedy College has recently become one of the merchants where one can pay with cryptocurrency. RKC offers a secure method to pay your course fees using Coinbase. Payment is accepted using Bitcoin, Ethereum, USD Coin and Litecoin.
Here’s presenting another gem of our #dilo -a day in the life of RKC student series. We asked some of our past and current students to share their thoughts and opinions, to give their feedback on how they handled the challenges of online learning.
There is no better way but to learn from those who came before and see if what worked for them will help you become a better student! Hopefully, this will help you to make an informed decision..
An Introduction
Who are you, really?
I am a Supply Chain Officer(Procurement) and my brief involves acquisition of goods, works, services , consulting and non consulting services for a project funded by the World Bank in the energy sector.
Which programme did you choose and why?
MSc in Procurement,Logistics and Supply Chain Management. Having been in supply chain management for well over 20 years, I felt that by acquiring advanced qualifications would enhance my unique capabilities in supply chain management. My overall goal is to offer consulting services independently as a consultant or contractor.
The Study Plan
How did you plan to study each module, and what was the reality? How many hours did/do you have to put in each day/or in a week?
By allocating at least three hours daily for each unit in the morning and after finishing my day’s work. I spent weekends studying and sometimes reading up to midnight to catch up with the tutorial offered by UoS (University of Salford) and RKC (Robert Kennedy College). Strictly adhering to my study schedule, it really worked for me.
What part of the day did/do you find most suitable to study? (e.g. early mornings, lunch break, evenings, weekends?)
Early mornings an hour and two hours in the evening. Saturday I spent the whole day studying and on Sundays half a day.
How much time did you devote to each assignment?
I devoted at least a week fo revision, drafting and finalizing the assignment.
Photo credit: Canva.com
Travelling and Communication
How did travelling impact your ability to study?
Much of it positively. However, there was one instance that I was negatively impacted when in an overseas travel. I experienced network problems and unlucky fell unwell for a whole week in the final submission time.
How were you able to interact with peers and/or professors given the time differences?
Ensuring that I respond to all posts and participate actively when I have time. Every time after work I had to go through all posts and submitted my posts too to any forum discussions.
A typical day as a master’s student
What does a typical day as an Online Masters’ student look like for you?
Extremely busy for me but very flexible given my tight work schedule.
Photo credit: Canva.com
Any advice?
Any advice you have for students to better plan their studies.
One has got to have interest in the studies.This is quite self motivating and gives one the impetus to keep studying despite challenges that come from busy work schedule.
I hope this blog has answered some of your questions, and please watch this place for similar blogs. So, if you have been thinking about doing a master’s degree and now understand how to study better for an online programme, look at our programmes and see if anything interests you.
If this year, 2020, has taught us anything, it is that risk is a part of life for humankind. The sooner we come to terms with it, identify the cause, plan and strategise to arrive at effective counter-measures, the greater our chance to survive and prosper!
What is risk?
Organisations have a number of internal and external factors that make it uncertain to meet their vision, missions, values, goals and objectives. These uncertain conditions that persist are collectively termed “risks”.
In general, our tendency is to try avoiding risks as a lot of these instances can lead to negative outcomes, but there can also be positive ramifications of risk. The positive results are an outcome of companies being able to capitalise on the opportunities presented by the risk.
Identifying negative risks and avoiding them, while at the same time being able to take advantage of the opportunities presented by positive risks can be a daunting task for a manager, as a wrong call might result in great loses or a missed opportunity for greater growth.
Risk is a future uncertain event and being able to predict the event and putting in place solutions or strategies to either avoid or take advantage of the event is what risk management is all about. But every organisation’s appetite for risk is different and that is usually directly dependent on the tolerance an organisation might have towards risk.
So, what are risk appetite and risk tolerance?
We have all heard the saying “no risk, no reward”. Taking big risks could lead to big losses, or conversely, could lead to greater rewards.
The risks which are identified as opportunities should be low hanging fruits to deal with and to reap their benefits.
Risk appetite is the willingness of an organisation to take risks, while risk tolerance refers to how much risk an organisation can bear.
Risk Management
According to Douglas Hubbard (The Failure of Risk Management: Why It’s Broken and How to Fix It) – Risk management is the identification, evaluation, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities.
Risk management can and should be implemented across any industry or vertical, such as project management, operations, finance, military, medical, etc. Like any other department in an organisation, the risk management team should ensure that it is able to justify its costs by first creating value for the organisation by becoming an integral part of the strategy and decision-making process of the organisation. The team should be responsive to changes (both internal and external), systematic and process oriented about their analysis, transparent about their processes, and capable of adapting and growing.
Effective implementation of risk management will provide an organisation with
Early warning to potential risk due to uncertain events
Better decision making through a good understanding of risks and their likely impact
Effective allocation of resources
Reassuring stakeholders
Risk management can be broken down in five basic steps
Plan – A risk management plan specifies the management’s intent, systems, and procedures required to manage risks, roles and responsibilities, and tools to be used in identifying risks. The plan will specify how the following four steps are to be executed by the organisation.
Identify – Identify the potential risks, their causes and their potential consequences. This is usually done by a team of subject matter experts using methods such as brainstorming and tools like SWOT analysis, flow diagrams, Ishikawa diagrams, etc.
Analyse – Once you have identified the potential risks, analyse them using either qualitative (a subjective analysis that is quick and easy to implement using tools like matrices probability and impact matrices) or quantitative (a detailed and time intensive analysis of risk using tools such as expected monetary value analysis, Monte Carlo analysis, decision tree, etc.) methods to classify them as high, medium, and low priority risks. Organisations may not have the resources to plan for all the risks and might be able to accept some risks without action, some with only periodic monitoring, and finally, some with a detailed action plan to take advantage of or to all together avoid the risk event.
Plan a response – Depending on the priority of the risk, a strategic response needs to be planned, and resources allocated with the goal of reducing the impact of negative risks, and capitalising on the impact of positive risks. Some of the strategies are avoid/transfer/accept/exploit.
Monitor and control – Nothing in this world is static, change is the only constant. Risk monitoring and control should be an ongoing and continuous process. A change in external or internal conditions might result in a low priority risk evolving into a high priority risk or a high priority risk devolving into a low priority one. By monitoring them you will not be caught unprepared!
This is why, not only is risk management an important module in a number of our online master’s degree programmes, but we also offer a couple of 100% online master’s degree programmes in Risk Management.
If you are interested or have any questions, you can also chat LIVE on WhatsApp with one of our Education Advisors for more information on the programmes we offer, the application process, and for information on discounts we might be offering at this time.
